Post Utme Wellspring University 2019 Commerce Question 25

Practice objective / multiple choice question 25 from the 2019 Post Utme Wellspring University Commerce examination.

Post Utme Wellspring University 2019 Commerce Objective / Multiple Choice
Question 25 POST_UTME_WELLSPRING_UNIVERSITY • 2019 • COMMERCE • objective

A company has a warehouse with a storage capacity of 50,000 units and wants to determine the optimal order quantity using the Economic Order Quantity (EOQ) model. If the cost of holding inventory is 15% per annum and the inventory turnover ratio is 3 times per year, calculate the optimal order quantity.

Answer Options

Correct Answer A. ( EOQ = sqrt{ rac{2 imes 50,000 imes 0.15}{3}} )
B. ( EOQ = sqrt{ rac{2 imes 50,000 imes 0.15}{3 imes 0.15}} )
C. ( EOQ = sqrt{ rac{2 imes 50,000 imes 0.15}{3 imes 0.15 imes 0.15}} )
D. ( EOQ = sqrt{ rac{2 imes 50,000 imes 0.15}{3 imes 0.15 imes 0.15 imes 0.15}} )
Correct Answer
A
Correct Option:
( EOQ = sqrt{ rac{2 imes 50,000 imes 0.15}{3}} )

About This Question

This is Post Utme Wellspring University 2019 Commerce Question 25. It is one of the objective questions from the 2019 Post Utme Wellspring University Commerce examination.

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